If leverage 50%, at wat age can a person effort to buy hse? Nt talking bout ppl from rich family or sponsored dp..

By the time u save the other 50%, do u think the hse will be at the same price?

Think again... unless u r cash rich or earning five figures monthly wic will allow u to save super fast... In average how many percentage of ppl even belong to this category.. Ntg wrong wif leveraging debt, but play safe.. nt to stretch too far..

Then just buy a lower-priced property.
And take into consideration inflation and future price increase when you plan and starting to save the money.
We are too spoiled by the lower downpayment and long repayment scheme.

this is the problem most of us have out there...
we tend not to measure up to ourselves and have unrealistic expectation.

who ask you to stay in 500k house when all you can afford is just 150k apartment as an example?

if everyone thinks like that, of course it feels long to save up to 50% of house price...


I am reminding myself this as i'm writing because sometimes i tend to get excited and go beyond my means...

i couldn't agree more with you on this part --> I can sleep well at night..

when things are still going up (incl debt), most people can do demi-god talk, easy. when things go down, many tails will drop between the legs, no talk.

if investors/speculators are demi-gods, developers are now full gods - they can sell via online!

if true, rest assured more will do the same - until the party stops. the rest, u can imagine...



This post has been edited by AVFAN: Mar 27 2013, 07:52 PM

up up up

yeah...up up up I'm waiting for good party to ends. then next generation can be saved.

frustrated with the non stop and ever increasing house price? watch this movie to get some ideal how to nego down the price with seller.

just a movie, don't be serious. you will end up behind bar if follows.....

True, but investing with debt money earn way faster than investment using savings. power of leverage.
must understand the risk though, heavy leverage is a risky gamble.

My concern on the ones born around late 80s onwards buying properties with the mindset of 100% guaranteed profit. very dangerous.

Being an accountant I don't believe leverage. Leverage take high risk. Accountant usually dislike risk.

My investment i try to take lesser loan with higher down payment with some tax planning in mind.

High leverage not just risky. but it also more costly. I believe, if you take high loan. Your gain is partially fund "banker".

Why getting 3.2% interest but payment 4.3 % interest?

Worst when the interest shooting up after PRU.

try doing some excel sheet. build a "what if " senario and you will see the different.

best if you have include some tax on your model.

you can said. high leverage. you put 10% downpayment (30K) and you get ( 120k). That is 4 times. You can earn 4 times if this if that...

but if you do it slowly. you for sure can make 2 times. Money can be make any time / moment . if today i can't make this. Maybe tomorrow i will. Why take such a high risk?

This post has been edited by tikaram: Mar 28 2013, 09:13 AM

Imho when young (30 years and below), that is the right time to leverage on debt as much as possible for appreciating asset. For appreciating asset, it is fine to leverage as much as possible for as long as possible. For depreciating asset, take as little debt as possible with the shortest period possible. So far this has worked well for me. Others got more titanium balls like FR leveraged kau2 because he is young

This post has been edited by AMINT: Mar 28 2013, 09:11 AM

First Iceland, then Greece, now Cyprus: So who is next in Asia?

http://www.malaysia-chronicle.com/index.ph...asia-?&Itemid=2

is die die must answer.

maybe those country bank that have high expose to japanese market?

This post has been edited by tikaram: Mar 28 2013, 09:16 AM

I think they just spent and spent and spent and a lot with the help of cheap and easy credit thinking that the good times will always be there... when global consumption declines, the fall begins... Just have to take the right medicine now no matter how bitter it is and then be on the way to recovery.. rather than live in denial and pain killers.

I have no problem with that, the only worry I have is those who came late to the party think they are the early birds.

This post has been edited by KLsooner: Mar 28 2013, 09:28 AM

Malaysia lor

why malaysia?

If you are buying your first house of course u buy as early as posible within your affordability for monthly installment.

These birds will soon find out the party is being held at a cuckoo's nest and there's no escape. You can't worry for those who do not heed the laws of economic gravity, or who think such laws do not apply to them, or who think themselves smart enough to beat the odds.